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Constitutional Reform and Governance Bill, continued

(b)	the new scheme gives P (or a person acting on P’s behalf) the

opportunity to opt for the accrued right to remain unaffected by the

provision.

285

(4)	If P has died, the references in sub-paragraph (3)(b) to P are to be read as

references to the persons who because of the accrued right are entitled, or may

become entitled, to a pension or to the benefit of any pension.

(5)	In sub-paragraph (3)(a) “service” means—

(a)	where the new scheme is a scheme under paragraph 7, service as a

290

member of the House of Commons, and

(b)	where the new scheme is a scheme under paragraph 11, service to

which that paragraph applies.

Meaning of “accrued right”

15  (1)

This paragraph applies for the interpretation of paragraph 14.

295

(2)	“Accrued right”, in relation to the new scheme, means so much of any right or

entitlement to or in respect of a pension payable out of the Fund as—

(a)	has accrued under the existing scheme in respect of service which was

before the making of the new scheme, or

(b)	by the time the new scheme comes into force, will have accrued under

300

the existing scheme in respect of service of a person within sub-

paragraph (3).

(3)	A person is within this sub-paragraph if the person’s service includes a period

of service before the making of the new scheme.

(4)	Where the new scheme is a scheme under paragraph 7, in this paragraph—

305

(a)	“existing scheme” means the schemes under paragraph 7 in force, or

made but not yet in force, when the new scheme is made, and

(b)	“service” means service as a member of the House of Commons.

(5)	Where the new scheme is a scheme under paragraph 11, in this paragraph—

(a)	the “existing scheme” means the schemes under paragraph 11 in force,

310

or made but not yet in force, when the new scheme is made, and

(b)	“service” means service to which that paragraph applies.

(6)	In this paragraph references to a right or entitlement include a future or

contingent right or entitlement.

Power to make consequential amendments

315

16  (1)

The Minister for the Civil Service may by order make such modifications of

any enactment or subordinate legislation (whenever passed or made) as the

Minister considers appropriate in consequence of any provision of a scheme

made by the IPSA or the Minister for the Civil Service under this Part of this

Schedule.

320

(2)	In sub-paragraph (1) the reference to subordinate legislation does not include

a scheme made by the IPSA or the Minister for the Civil Service under this Part

of this Schedule.

(3)	An order under this paragraph is to be made by statutory instrument.

(4)	A statutory instrument containing an order under this paragraph is subject to

325

annulment in pursuance of a resolution of either House of Parliament.

Interpretation etc

17  (1)

A scheme made by the IPSA under paragraph 3 or 7 may amend or revoke any

previous scheme made by the IPSA under that paragraph.

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682

Constitutional Reform and Governance Bill, continued

(2)	A scheme made by the Minister for the Civil Service under paragraph 11 may

330

amend or revoke any previous scheme made by the Minister under that

paragraph.

(3)	In this Part of this Schedule—

“the Fund” means the Parliamentary Contributory Pension Fund;

“the IPSA” means the Independent Parliamentary Standards Authority;

335

“modifications” includes additions, alterations and omissions (and related

expressions are to be read accordingly);

“pension” includes gratuity;

“subordinate legislation” has the same meaning as in the Interpretation Act

1978.

340

Part 2

Provision which may be included in schemes

Introductory

18  (1)

In this Part of this Schedule “relevant service”—

(a)	for the purposes of paragraph 9(1)(a), means service as a member of

345

the House of Commons, and

(b)	for the purposes of paragraph 12(1)(a), means service to which

paragraph 11 applies.

(2)	Expressions defined in relation to Part 1 of this Schedule have the same

meaning in this Part of this Schedule as in that Part.

350

Contributions

19	Provision authorising or requiring contributions and other sums to be paid into

the Fund by or on behalf of persons in relevant service, including provision for

those contributions and sums to be paid—

(a)	by deductions from salary;

355

(b)	in the case of a person who does not draw a salary, out of money

provided by Parliament.

Conditions etc

20	Provision as to—

(a)	the circumstances in which there is to be entitlement to a pension

360

payable out of the Fund;

(b)	the conditions of any such entitlement;

(c)	the persons to or for the benefit of whom such a pension is payable;

(d)	the calculation of the amount of any such pension;

(e)	the payment or commutation of any such pension.

365

Pensions not paid out of Fund

21  (1)

Provision for the application of assets of the Fund in or towards the provision

of pensions to be paid otherwise than out of the Fund.

(2)	In connection with such provision, provision for the payment into the Fund out

of money provided by Parliament of sums in addition to those paid into the

370

Fund under paragraph 5.

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Constitutional Reform and Governance Bill, continued

Transfer values

22  (1)

Provision for the payment and receipt of transfer values by the trustees of the

Fund (including provision for the payment of such values into the

Consolidated Fund).

375

(2)	Provision for the transfer and receipt by the trustees of the Fund of funds or

policies of insurance in lieu of transfer values.

Service

23	Provision authorising service other than relevant service to be taken into

account, in addition to relevant service, for the purposes of any provision of the

380

scheme.

Repayments

24  (1)

Provision as to the circumstances and manner in which amounts equal to some

or all of the contributions and other sums paid by or on behalf of a person into

the Fund may be repaid or paid to that person.

385

(2)	Provision as to the circumstances and manner in which any such amounts are

to be paid out of the Consolidated Fund in respect of transfer values paid into

that Fund.

(3)	Provision under sub-paragraph (1) or (2) may include provision as to whether

any repayment or payment made under that provision is to be made with or

390

without interest.

Assignment etc.

25	Provision rendering void—

(a)	any assignment (or, in Scotland, assignation) of a pension which is

payable or may become payable out of the Fund;

395

(b)	any charge on such a pension;

(c)	any agreement to assign or charge such a pension.

Functions

26	Provision conferring functions under the scheme on persons specified in or

determined under the scheme.

400

Approvals

27	Provision making the approval, satisfaction or opinion of persons on whom

functions are conferred by or under the scheme material for the purposes of any

provision of the scheme.

Payments without probate

405

28	Provision authorising (in relation to such cases, circumstances or persons as

may be specified in or determined under the scheme) any sum due to be paid

out of the Fund in respect of a person who has died to be paid without probate

or other proof of title.

Application of other provisions

410

29	Provision which (with or without modifications) applies in relation to a

pension payable out of the Fund so much of any enactment or subordinate

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684

Constitutional Reform and Governance Bill, continued

legislation (whenever passed or made) as relates to another pension, being a

pension payable out of money provided by Parliament.

Part 3

415

Amendments, transitional provision etc

Pensions (Increase) Act 1971 (c. 56)

30  (1)

Part 1 of Schedule 2 is amended as follows.

(2)	For paragraph 3A substitute—

“3A	A pension which, under a scheme under paragraph 7 or 11 of

420

Schedule [Parliamentary and other pensions] to the Constitutional

Reform and Governance Act 2010, is payable out of the

Parliamentary Contributory Pension Fund.”

(3)	In paragraph 3B for “an order” substitute “a scheme”.

Parliamentary and other Pensions Act 1972 (c. 48)

425

31  (1)

Section 27 (pensions for dependants of Prime Minister or Speaker) is amended

as follows.

(2)	In subsection (1)—

(a)	in paragraph (a) for the words from “in respect” to the end substitute

“under a scheme made by the Minister for the Civil Service under

430

paragraph 11 of Schedule [Parliamentary and other pensions] to the

Constitutional Reform and Governance Act 2010 to receive a pension

payable out of the Parliamentary Contributory Pension Fund in respect

of service to which that paragraph applies”, and

(b)	in paragraph (c) for “Treasury” substitute “Minister for the Civil

435

Service”.

(3)	In subsection (2)—

(a)	for “the Parliamentary pension scheme” substitute “a scheme made by

the Minister for the Civil Service under paragraph 11 of Schedule

[Parliamentary and other pensions] to the Constitutional Reform and

440

Governance Act 2010”,

(b)	in paragraph (a) for “as a Member of the House of Commons”

substitute “to which that paragraph applies”, and

(c)	in paragraph (b), for “Leader of the House of Commons” substitute

“Minister for the Civil Service”.

445

(4)	In subsection (5), omit from ““the Leader” to the end.

32  (1)

The amendments made by paragraph 31 do not apply in relation to a person

who, having held office as Prime Minister and First Lord of the Treasury or

Speaker of the House of Commons, died before that paragraph comes into

force.

450

(2)	In relation to such a person section 27 of the Parliamentary and other Pensions

Act 1972, and the provisions designated under that section, have effect as if

this Act had not been passed.

European Parliament (Pay and Pensions) Act 1979 (c. 50)

33  (1)

Section 4 (pensions) is amended as follows.

455

(2)	In subsection (1)—

(a)	for “Leader of the House of Commons may by order make” substitute

“IPSA may make a scheme containing”, and

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685

Constitutional Reform and Governance Bill, continued

(b)	for “by the order” substitute “in the scheme”.

(3)	In subsection (2)—

460

(a)	for “orders” substitute “a scheme”, and

(b)	for “order” substitute “scheme”.

(4)	In subsection (3)—

(a)	for “an order” substitute “a scheme”, and

(b)	in paragraphs (d) and (g) for “order” substitute “scheme”.

465

(5)	In subsection (3A), for “An order” substitute “A scheme”.

(6)	For subsection (4) substitute—

“(4)	Before making a scheme under this section the IPSA must consult—

(a)	the Treasury,

(b)	the Minister for the Civil Service,

470

(c)	persons it considers to represent those likely to be affected by

the scheme,

(d)	the Government Actuary, and

(e)	any other person it considers appropriate.

(4A)	The IPSA must send to the Speaker of the House of Commons for

475

laying before both Houses of Parliament—

(a)	any scheme made by it under this section, and

(b)	a statement of the reasons for making the scheme.

(4B)	When the scheme and the statement of reasons have been laid, the

IPSA must publish them in a way it considers appropriate.”

480

(7)	For subsection (5) substitute—

“(5)	The IPSA must from time to time prepare a report on the operation of

any provisions in force under this section, and send it to the Speaker

of the House of Commons for laying before both Houses of

Parliament.”

485

(8)	After subsection (7) insert—

“(8)	A scheme made by the IPSA under this section may amend or revoke

any previous scheme made by the IPSA under this section.”

34  (1)

Section 6 (block transfer into another pension scheme) is amended as follows.

(2)	In subsection (1)—

490

(a)	for “Leader of the House of Commons may by order” substitute “IPSA

may, with the consent of the Treasury and the Minister for the Civil

Service”, and

(b)	for “the order” substitute “the direction”.

(3)	In subsection (2)—

495

(a)	for “making an order” substitute “giving a direction”,

(b)	for “Leader of the House of Commons” substitute “IPSA”,

(c)	for “he” (in both places) substitute “it”,

(d)	for “make such an order” substitute “give such a direction”, and

(e)	for “the order” substitute “the direction”.

500

(4)	In subsection (4), in the definition of “the relevant pension provisions”—

(a)	for “an order” substitute “a direction”,

(b)	for “orders” substitute “a scheme”, and

(c)	for “order is made” substitute “direction is given”.

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686

Constitutional Reform and Governance Bill, continued

35  (1)

Section 7 (expenses and receipts) is amended as follows.

505

(2)	In subsection (1)(c) (expenses and receipts)—

(a)	for “any order” substitute “a scheme”, and

(b)	omit the words from “or of any” to the end.

(3)	In subsection (1)(d) for “an order” substitute “a direction”.

36  (1)

Section 8 is amended as follows.

510

(2)	In subsection (1) (interpretation)—

(a)	after the definition of “electoral region” insert—

““the IPSA” means the Independent Parliamentary Standards

Authority;”, and

(b)	omit the definition of “the Leader of the House of Commons”.

515

(3)	Omit subsection (2).

House of Commons Members’ Fund and Parliamentary Pensions Act 1981 (c. 7)

37	In section 1 (entitlement to payments out of House of Commons Members’

Fund)—

(a)	in subsection (5)(b) for “paragraph (b), (c) or (d) of section 2(2) of the

520

Parliamentary and other Pensions Act 1987” substitute “subsection

(5A)”, and

(b)	after subsection (5) insert—

“(5A)

The offices are—

(a)	the offices mentioned in paragraph 11(2)(a), (b), (d)

525

or (e) of Schedule [Parliamentary and other

pensions] to the Constitutional Reform and

Governance Act 2010;

(b)	the offices of Chairman of Ways and Means and

Deputy Chairman of Ways and Means.”

530

Parliamentary and other Pensions Act 1987 (c. 45)

38

Omit—

(a)	section 1,

(b)	section 2(1) to (8) and (10),

(c)	section 3, and

535

(d)	Schedule 1.

39  (1)

This paragraph applies if an order under section 61 or 62 of this Act provides

that (despite the repeals in paragraph 38) any of the existing regulations are to

have effect as if contained in a scheme under paragraph 3, 7 or 11.

(2)	The order may provide for any provision of the existing regulations which—

540

(a)	relates to one or more of the matters listed in paragraph 3(1), but

(b)	could not be contained in a scheme under paragraph 3,

to have effect as if contained in a scheme under that paragraph.

(3)	If it does so a scheme under paragraph 3 may—

(a)	revoke the provision;

545

(b)	amend it so that it makes provision which may be contained in a

scheme under that paragraph (but not otherwise amend it).

(4)	The order may provide for any provision of the existing regulations which—

(a)	relates to service as a member of the House of Commons, but

(b)	could not be contained in a scheme under paragraph 7,

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Committee of the whole House: 1 February 2010

687

Constitutional Reform and Governance Bill, continued

550

to have effect as if contained in a scheme under that paragraph.

(5)	If it does so a scheme under paragraph 7 may—

(a)	revoke the provision;

(b)	amend it so that it makes provision which may be contained in a

scheme under that paragraph (but not otherwise amend it).

555

(6)	The order may provide for any provision of the existing regulations which—

(a)	relates to service to which paragraph 11 applies, but

(b)	could not be contained in a scheme under that paragraph,

to have effect as if contained in a scheme under that paragraph.

(7)	If it does so a scheme under paragraph 11 may—

560

(a)	revoke the provision;

(b)	amend it so that it makes provision which may be contained in a

scheme under that paragraph (but not otherwise amend it).

(8)	“The existing regulations” means regulations under section 2 of the

Parliamentary and other Pensions Act 1987.

565

Ministerial and other Pensions and Salaries Act 1991 (c. 5)

40	Omit section 6.

Pensions Act 2004 (c. 35)

41	In section 249A(3)(c) (schemes to which section 249A does not apply) for

“section 2 of the Parliamentary and other Pensions Act 1987 (c. 45)” substitute

570

“paragraph 3, 7 or 11 of Schedule [Parliamentary and other pensions] to the

Constitutional Reform and Governance Act 2010”.

Parliamentary Standards Act 2009 (c. 13)

42  (1)

In section 5(9) (MPs’ allowances scheme does not affect pensions) for “the

Parliamentary and other Pensions Act 1987 (c. 45)” substitute “Schedule

575

[Parliamentary and other pensions] to the Constitutional Reform and

Governance Act 2010”.

(2)	In paragraph 18 of Schedule 1 (IPSA’s administration and regulation

functions), after sub-paragraph (2) insert—

“(3)	The IPSA’s functions under the following provisions are also

580

regulation functions—

(a)	sections 3, 4 and 6 of the European Parliament (Pay and

Pensions) Act 1979 (but not any function relating to the

administration of a scheme under section 3 or 4);

(b)	paragraphs 1, 3, 4, 6, 7 and 10 of Schedule [Parliamentary

585

and other pensions] to the Constitutional Reform and

Governance Act 2010 (but not any function relating to the

administration of a scheme under paragraph 3 or 7).”.’.

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Revised 1 February 2010